- Over-the counter (“OTC”) Avenova® revenue topped $1 million for
the first time with record unit sales
- Cash and cash equivalents of $10.5 million as of March 31,
2021
- Extending the Avenova product line with complementary
products
Conference call begins at 4:30 p.m. Eastern
time today
NovaBay® Pharmaceuticals, Inc. (NYSE American: NBY) reports
financial results for the three months ended March 31, 2021 and
provides a business update.
“Our focus on the OTC channel is paying off as Avenova
direct-to-consumer quarterly revenue exceeded $1 million for the
first time with unit sales setting a new record. The OTC channel
accounted for approximately 79% of Avenova revenue for the quarter,
up from 51% for the prior-year period,” said Justin Hall, President
and CEO of NovaBay Pharmaceuticals. “We continue to view the OTC
channel as the greatest growth opportunity going forward and intend
to capitalize on this by adding complementary products to the
Avenova lineup.
“We are making excellent progress building the OTC channel this
year including expanding access to Avenova in CVS stores across the
country, our first brick-and-mortar retail partner. In addition, we
introduced Avenova Warm Eye Compress as a line extension to assist
consumers in managing dry eye, with this product now available on
Amazon.com and Avenova.com,” he added. “We will be launching two
additional products in the coming months and expect to accelerate
Avenova sales as we roll out new digital advertising campaigns.
These campaigns will come with a heightened level of sophistication
for real-time monitoring of performance to maximize return on
advertising spend. Our online sales channel is now a significant
part of our business and our direct-to-consumer advertising is now
one of our core competencies.
“We believe NovaBay is extremely well-positioned to execute on
our growth strategy including our new media campaigns, with capital
sufficient to fund current operations well into 2022,” Mr. Hall
added. “We have stepped up our efforts to grow through strategic
acquisition of ophthalmic and skincare products to expand our
presence in these key markets and leverage our sales channels. This
is one of our most important strategic initiatives for 2021.”
First Quarter Financial Results
Net product revenue for the first quarter of 2021 was $1.8
million, compared with $1.9 million for the first quarter of 2020
with the difference due to revenue generated from products other
than Avenova in 2020. Avenova revenue for the first quarter of 2021
was $1.6 million, up from $1.5 million for the first quarter of
2020. The increase reflects the continued higher number of OTC
units sold, partially offset by a decrease in the number of net
units sold through pharmacy channels.
Gross margin on total net sales for the first quarter of 2021
was 75%, compared with 69% for the first quarter of 2020, with the
improvement due to the decrease in revenue from products other than
Avenova which are sold at a relatively lower margin.
Operating expenses for the first quarter of 2021 were $2.9
million, compared with $2.8 million for the first quarter of 2020.
Sales and marketing expenses for the first quarter of 2021 were
$1.7 million, compared with $1.6 million for the first quarter of
2020, with higher digital advertising costs partially offset by
lower sales representative headcount in the 2021 period. General
and administrative expenses for the first quarter of 2021 were $1.2
million, compared with $1.3 million for the first quarter of 2020.
The 2021 period included the favorable impact of an insurance
reimbursement for legal costs incurred in the prior year.
Operating loss for the first quarters of 2021 and 2020 were
unchanged at $1.5 million.
Net loss for the first quarter of 2021 was $1.5 million, or
$0.04 per share, compared with a net loss for the first quarter of
2020 of $1.6 million, or $0.06 per share.
NovaBay reported cash and cash equivalents of $10.5 million as
of March 31, 2021, compared with $12.0 million as of December 31,
2020.
Conference Call
NovaBay management will host an investment community conference
call today beginning at 4:30 p.m. Eastern time (1:30 p.m. Pacific
time) to discuss the Company’s financial and operational results
and to answer questions. Shareholders and other interested parties
may participate in the conference call by dialing 866-777-2509 from
within the U.S. or 412-317-5413 from outside the U.S., and
requesting the NovaBay Pharmaceuticals call.
A live webcast of the call will be available at
http://novabay.com/investors/events and will be archived for 90
days. A replay of the call will be available beginning two hours
after the call ends through May 27, 2021 by dialing 877-344-7529
from within the U.S., 855-669-9658 from Canada, or 412-317-0088
from outside the U.S., and entering the conference identification
number 10155343.
About NovaBay Pharmaceuticals, Inc.: Going Beyond
Antibiotics®
NovaBay Pharmaceuticals, Inc. is a biopharmaceutical company
focusing on high-quality, differentiated, anti-infective consumer
products: Avenova®, the premier antimicrobial lid and lash spray,
CelleRx® Clinical Reset™, a breakthrough product in the beauty
category, and NeutroPhase® Skin and Wound Cleanser for wound
healing. NovaBay’s products are formulated with its patented, pure,
stable, pharmaceutical-grade hypochlorous acid that replicates the
antimicrobial chemicals used by white blood cells to fight
infection. NovaBay’s hypochlorous acid products do not cause
stinging or irritation, are non-toxic and non-sensitizing, making
them completely safe for regular use. Avenova is the only
commercial hypochlorous acid lid and lash spray product clinically
proven to reduce bacterial load on ocular skin surfaces, thus
effectively addressing the underlying cause of bacterial dry
eye.
Forward-Looking Statements
Except for historical information herein, matters set forth in
this press release are forward-looking within the meaning of the
“safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995, including statements about the commercial
progress, potential opportunities for revenue accretion and future
financial performance of NovaBay Pharmaceuticals, Inc. This release
contains forward-looking statements that are based upon
management’s current expectations, assumptions, estimates,
projections and beliefs. These statements include, but are not
limited to, statements regarding our business strategies and
current product offerings, potential future product offerings
including through strategic acquisitions or licensing
opportunities, expanded access to our products, and any future
revenue that may result from selling these products, as well as
generally the Company’s expected future financial results. These
forward-looking statements are identified by the use of words such
as “launch,” “believe,” “grow,” “expand,” “progress,” “making,”
“expect,” “will,” and “continue,” among others. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or achievements to be materially
different and adverse from those expressed in or implied by the
forward-looking statements. Factors that might cause or contribute
to such differences include, but are not limited to, risks and
uncertainties relating to the size of the potential market for our
products, the possibility that the available market for the
Company’s products will not be as large as expected, the Company’s
products will not be able to penetrate one or more targeted
markets, and revenues will not be sufficient to meet the Company’s
cash needs. Other risks relating to NovaBay’s business, including
risks that could cause results to differ materially from those
projected in the forward-looking statements in this press release,
are detailed in NovaBay’s latest Form 10-Q/K filings with the
Securities and Exchange Commission, especially under the heading
“Risk Factors.” The forward-looking statements in this release
speak only as of this date, and NovaBay disclaims any intent or
obligation to revise or update publicly any forward-looking
statement except as required by law.
Socialize and Stay informed on
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Website
Avenova Purchasing
Information For NovaBay Avenova purchasing information:
Please call 800-890-0329 or email sales@avenova.com Avenova.com
CelleRx Clinical Reset Purchasing
Information For NovaBay CelleRx Clinical Reset
purchasing information Please call 877-CELLERX www.CelleRx.com
NOVABAY PHARMACEUTICALS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands except par value
amounts)
March 31,
December 31,
2021
2020
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
10,508
$
11,952
Accounts receivable, net of allowance for
doubtful accounts ($18 and $0 at March 31, 2021 and December 31,
2020, respectively)
1,038
1,106
Inventory, net of allowance for excess and
obsolete inventory and lower of cost or estimated net realizable
value adjustments ($201 and $236 at March 31, 2021 and December 31,
2020, respectively)
850
608
Prepaid expenses and other current
assets
750
576
Total current assets
13,146
14,242
Operating lease right-of-use assets
350
436
Property and equipment, net
100
84
Other assets
476
476
TOTAL ASSETS
$
14,072
$
15,238
LIABILITIES AND STOCKHOLDERS'
EQUITY
Liabilities:
Current liabilities:
Accounts payable
$
833
$
302
Accrued liabilities
1,851
2,115
Operating lease liabilities
396
416
Total current liabilities
3,080
2,833
Operating lease
liabilities-non-current
9
87
Total liabilities
3,089
2,920
Stockholders' equity:
Preferred stock: 5,000 shares authorized;
none issued and outstanding at March 31, 2021 and December 31,
2020
—
—
Common stock, $0.01 par value; 75,000
shares authorized, 41,782 shares issued and outstanding at March
31, 2021 and December 31, 2020
418
418
Additional paid-in capital
148,146
147,963
Accumulated deficit
(137,581
)
(136,063
)
Total stockholders' equity
10,983
12,318
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
14,072
$
15,238
NOVABAY PHARMACEUTICALS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(in thousands except per share
data)
Three Months Ended March
31,
2021
2020
Sales:
Product revenue, net
$
1,801
$
1,892
Other revenue, net
6
—
Total sales, net
1,807
1,892
Product cost of goods sold
455
581
Gross profit
1,352
1,311
Operating expenses:
Research and development
5
9
Sales and marketing
1,680
1,560
General and administrative
1,187
1,277
Total operating expenses
2,872
2,846
Operating loss
(1,520
)
(1,535
)
Non-cash gain on changes in fair value of
warrant liability
—
137
Non-cash gain on changes in fair value of
embedded derivative liability
—
2
Other income (expense), net
2
(186
)
Loss before provision for income taxes
(1,518
)
(1,582
)
Provision for income taxes
—
—
Net loss and comprehensive loss
$
(1,518
)
$
(1,582
)
Net loss per share attributable to common
stockholders (basic and diluted)
$
(0.04
)
$
(0.06
)
Weighted-average shares of common stock
used in computing net loss per share attributable to common
stockholders (basic and diluted)
41,782
27,978
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210506006117/en/
NovaBay Contact Justin Hall
Chief Executive Officer and General Counsel 510-899-8800
jhall@novabay.com
Investor Contact LHA
Investor Relations Jody Cain 310-691-7100 jcain@lhai.com
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